Housing Allowance During Retirement

How does Housing Allowance work when you’re retired?


To take a distribution with special housing allowance tax treatment, you must be at least age 59½ and receive a Housing Allowance Authorization letter from your church or governing organization.


You can request one distribution and have a portion of that distribution be treated as housing allowance and another portion a regular distribution. You will receive one check or one electronic payment (ACH) for the total amount of the distribution less any elected tax withholding.

You may designate a percentage to be withheld from any taxable portion of your distribution, but you will be responsible for any estimated tax and any penalties incurred as a result of that decision.

Making Changes

You are responsible to contact Envoy Financial to request Housing Allowance distribution.  You must also submit the Housing Allowance Authorization Letter from your organization.  Unless the authorization letter states the Housing Allowance is a fixed amount and to be continued each year, you must get a new authorization letter and new request for distribution each year.

In the event  you set up for recurring Housing Allowance distribution, your payments will continue unless you contact us to stop the payment or until your account balance is depleted.

* Envoy does not offer legal or tax advice and encourages that you consult with a lawyer and/or professional tax advisor for personalized tax advice.